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Oatly Group AB (Nasdaq: OTLY), the world's largest oat drink company, announced its financial results for the second quarter and the first half of 2024. The company reported a revenue increase of $6.2 million, or 3.2%, to $202.2 million for Q2 2024, compared to $196.0 million in the same period last year. When excluding the foreign currency exchange headwind of $1.5 million, revenue increased by 3.9% to $203.7 million. This growth was primarily driven by strong performances in the Europe & International and North America segments, which offset expected declines in the Greater China segment due to a strategic reset initiated in Q3 2023.
The volume of sold oat drinks rose significantly, with a 9.6% increase to 137 million liters, compared to 125 million liters in the second quarter of 2023. Additionally, Oatly produced 142 million liters of finished goods in Q2 2024, up from 130 million liters in the same period last year, highlighting the company's expanding production capacity.
Improved Gross Profit and Margins
Oatly's gross profit for Q2 2024 was $59.0 million, a substantial increase from $37.7 million in Q2 2023. The gross profit margin improved by 1,000 basis points, reaching 29.2% in Q2 2024, compared to the prior year period. This improvement was driven by enhanced supply chain efficiencies in the North America and Greater China segments, as well as a favorable product mix shift in Greater China following the strategic reset.
The company also reported a significant reduction in its adjusted EBITDA loss, which narrowed to $11.0 million in Q2 2024, compared to a loss of $52.5 million in the prior year period. This improvement was largely due to increased gross profit and lower selling, general, and administrative expenses.
Positive Outlook for Full Year 2024
Based on its current operating environment and strategic actions, Oatly has raised its full-year 2024 guidance for constant currency revenue growth and adjusted EBITDA, while lowering its capital expenditure forecast. The company now expects:
- Constant currency revenue growth in the range of 6% to 10%, up from the previous expectation of 5% to 10%.
- Adjusted EBITDA loss to range between $(35) million and $(50) million, compared to the earlier projection of $(35) million to $(60) million.
- Capital expenditures below $70 million, revised down from the prior expectation of below $75 million.
These projections are set against a backdrop of significant macroeconomic and geopolitical uncertainties, which could impact the company's performance. However, Oatly's leadership remains confident in its growth trajectory and operational efficiencies.
